This song was based on an actual incident in 1973 where a recently released convict was on the bus home after serving a prison term. He wasn't quite sure if his wife still wanted him back after three long years. He said in his letter that if she had chosen to move on with her life, he would understand. But if she wanted him back, she should tie a yellow ribbon round the Old Oak Tree as a sign that he should get off the bus and come home.

As, the bus approached his home town, he was so afraid of disappointment that he asked the bus driver to look out for the yellow ribbon for him instead. When they finally saw the Oak Tree, it didn't just have a single ribbon, the tree was full of yellow ribbons! His wife wanted him to know, without the shadow of a doubt that he had been forgiven and he had a family to come home to old oak tree.